Why Economists Are Urging the Government to Cut Free Nutritious Meals Budget

Several economists have urged the government to cut the budget for the Free Nutritious Meals (MBG) programme. The reduction in MBG funding is seen as the most straightforward option amid the government’s plans to implement budget efficiency across ministries and agencies to avoid the risk of a state budget deficit.

Didin Damanhuri, Professor at Bogor Agricultural University (IPB University), stated that the MBG budget allocated Rp 335 trillion this year should be focused on stunting and severe malnutrition areas. According to his calculations, through budget reallocation, MBG would likely only require approximately Rp 40-50 trillion.

“Thus, other budget allocations could avoid deficits, finance rising oil prices, fund social assistance and various development needs,” said Didin during an online discussion titled “Criticising Plans to Expand APBN Deficit Limits” held on Tuesday, 17 March 2026.

Dipo Satria Ramli, economist at the Center of Reform on Economics (CORE) Indonesia, also recommended a similar approach. “All rating agencies and many economists have commented that the government should simply cut MBG—it’s the easiest and most straightforward solution,” he said.

Budget cuts to the MBG programme are viewed as capable of sending a positive signal to market participants and economic actors that the government understands the current fiscal challenges. Previously, global rating agency Fitch Ratings highlighted the MBG programme as carrying risks of inflating actual state budget spending beyond targets.

Meanwhile, economist Muhammad Andri Perdana from Bright Institute even proposed a temporary moratorium on the programme. He expressed regret over the government’s statement that it would not touch the MBG budget despite deciding on budget efficiency measures.

The government recognises there is a risk of deficit expansion. “If we want not to exceed the deficit limit, then something has to be sacrificed,” said Andri.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government will implement budget efficiency across ministries and agencies but will not cut MBG funding. “Flagship programme budgets are unchanged—everything will continue because these are long-term investments,” he said during an iftar meal with the media at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday, 16 March 2026.

According to Airlangga, President Prabowo Subianto has directed the government to maintain the deficit below the 3 per cent threshold relative to Gross Domestic Product (GDP). He has also coordinated with ministries and agencies to calculate how much state spending will be reduced.

This year, the government has allocated Rp 335 trillion for MBG, up from Rp 71 trillion last year. The substantial MBG allocation for 2026 is intended to reach a target of 82.9 million beneficiaries.